5 Nov, 2020 @ 18:30
1 min read

Customer in Spain’s Costa Blanca gets back excessive interest charges on controversial credit card

Holder Of High Interest Credit Card In Spain S Costa Blanca Gets Back Excessive Charge Refund

A SPANISH online bank has been ordered by a Costa Blanca court to refund €8,820 to a customer who was charged excess interest on a controversial high-interest credit card.

An Orihuela judge decided in favour of a WiZink bank client over charges dating back to 2007 in the use of the so-called ‘revolving’ card.

The card allows customers to continuously borrow up to certain limits depending on purchases and payments.

In March, Spain’s highest legal body, the Supreme Court, threw out a WiZink appeal in a case involving a Santander woman who had annual interest rate charges on her card of 26.82 per cent.

‘Revolving’ card holders usually pay a fixed monthly fee which is not very high, but with an excessive interest rate.

That means that not only does the cardholder end up paying a much higher amount than the available capital, but the payment of the outstanding debt is extended over such a long period that the borrower can become, in what the Supreme Court called, a “captive debtor”.

The ruling has opened the door to court claims across Spain, which included the hearing in Orihuela.

Bank of Spain rules limit interest charges to a maximum of 22 per cent, but the customer was charged almost five per cent more.

The €8,820 refund covers a 13-year-period over the excess penalties, plus an additional award covering interest and legal costs.

Alex Trelinski

Alex worked for 30 years for the BBC as a presenter, producer and manager. He covered a variety of areas specialising in sport, news and politics. After moving to the Costa Blanca over a decade ago, he edited a newspaper for 5 years and worked on local radio.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Previous Story

Major charity fashion show coming to Mijas Costa this week

Breaking
Next Story

BREAKING: Spain records deadliest day of coronavirus pandemic with 368 deaths

Latest from Business & Finance

Go toTop

More From The Olive Press

4 bedroom Townhouse for sale in Ronda - € 245

4 bedroom Townhouse for sale in Ronda – € 245,000

Townhouse Ronda, Málaga   4 beds   3 baths €
3 bedroom Villa for sale in Badalona - € 429

3 bedroom Villa for sale in Badalona – € 429,000

Villa Badalona, Barcelona   3 beds   2 baths €